Japanese Yen technical forecast USD JPY indecision- breakout pending

Japanese Yen technical forecast: USD/JPY weekly trade levels

• Japanese Yen rebounds off multi-year uptrend support
• USD/JPY sets yearly opening-range around objective yearly open
• Resistance 133.20s, 134.77, 136.66– support 128.30s, 125.85-126.56 (key), 122.20s

The Japanese yen has been trading within a 5.6% range since the start of the year with USD/JPY responding to long-term uptrend support last month. The stage is set, and the levels are clear as price holds at the objective 2023 yearly open. These are the updated targets and invalidation levels that matter on the USD/JPY weekly technical chart.

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Japanese Yen Price Chart – USD/JPY Weekly

Chart Prepared by Michael Boutros, Sr. Technical Strategist; USD/JPY on TradingView

Technical Outlook: The Japanese Yen has been consolidating within the January range with USD/JPY trading just above multi-year slope support. We’re on the lookout for a breakout in the days ahead for guidance on whether the broader October correction is complete.

Initial resistance stands with the 52-week moving average near ~133.20s backed by the yearly range highs at 134.77 and the 38.2% retracement 136.66. Ultimately a breach / close above the July high-week close / slope resistance (red) at 138.48 would be needed to mark resumption of the broader uptrend.

Initial support rests with the lower parallel (currently ~128.30s) backed by 125.85-126.56- a region defined by the 2015 swing high and the 50% retracement of the 2020 advance. Ultimately, a break / weekly close below the original slope extending off the 2021 lows (currently ~122.20s) would be needed to invalidate the broader multi-year uptrend.

Bottom line: USD/JPY rebounded off uptrend support last month with price consolidating just above- breakout pending. From at trading standpoint, losses should be limited to 125.85 IF price is going to respect this multi-year slope. I’ll publish an updated Japanese Yen short-term technical outlook once we get further clarity on the near-term USD/JPY technical trade levels.

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--- Written by Michael Boutros, Sr Technical Strategist with FOREX.com

Follow Michael on Twitter @MBForex